Gold futures climbed on Monday, looking to extend last week’s overall gains, with a softer U.S. dollar and fresh talk of a stimulus deal supporting prices for the metal.
“Like equities, the gold market seems to think easy money from the [Federal Reserve], plus big deficit spending by government, is going to win out over COVID’s deeply deflationary impact ,” Adrian Ash, director of research at BullionVault, told MarketWatch.
Bullion’s advance, however, remains threatened by increased appetite for risk as markets react to promising developments in President Donald Trump’s recovery from COVID-19.